The decline of centralized entities has worked well for their decentralized counterparts. Over the weekend, the USDC witnessed significant trading volume on various decentralized exchanges.
Uniswap, for example, hit its highest daily volume of $11.84 billion on March 11. But it is not the only decentralized protocol that has been successful.
Decentralized exchanges record impressive growth
The development comes against the backdrop of Circle’s USDC decoupling event that occurred over the weekend after the collapse of Signature, Silvergate, and Silicon Valley Bank.
Several centralized crypto exchanges, including Binance, Coinbase, Crypto.com, and Bitpay, stopped payments and automatic conversions into the stablecoin. This caused stablecoin prices to fluctuate wildly, and gas fees skyrocketed as investors rushed to decentralized entities to exchange USDC for wrapped ether and other tokens.
According data From Dune Analytics, the USDC pools for Wrapped Ether (WETH), USDT, and DAI have managed to rack up $15 billion in volume over the week before reaching the milestone on Saturday. uniswap generated $8.7 million in transaction fees as a result of high same-day traffic, reaching a 10-month high.
Even the popular DEX Curve Finance, which is designed for stablecoin trading, Recorded its highest daily transaction volume of nearly $8 billion while racking up $952 thousand in fees. SushiSwap too experienced an increase in activity and became one of the most used smart contracts by major Ethereum whales during the same period.
Turn to DeFi during big crashes
The decentralized finance (DeFi) sector, which relies on smart contracts rather than intermediaries to provide financial services, has seen tremendous growth in recent years.
Following back-to-back crashes in the past year, faith in centralized institutions is at an all time low. DeFi, on the other hand, has enjoyed something of a revival because of this.
a recent report by CoinGecko suggested that funding for centralized projects appears to have reached saturation point as DeFi projects saw increased funding even as the market went from bullish to bearish.
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